Solving a Leontief Input-Output Model using Matrix Algebra

This video goes through an actual example of solving a Leontief Input Output Problem using techniques learned in matrix algebra.

Created by Justin S. Eloriaga

[alexandros]

1 hour before the exam this dude saved my ass! thanks buddy

[LoserGopher]

Really helpful, I liked your simple way of explaining it. Thank You!

[Ballers_updates]

nice lecture
at 14.0 do you mind explaining how you are getting o.7?
I will appreciate

[JanetPatemoshela]

its made clear. just the last, the question says the demands have increased by 40 and 70 respectively. the new output demand is not supposed to be 40 and 70 but the original demand minus the change. like industry 1 will be 400+40=440, industry 2, 100+70=170 and industry 3 1500-100=1400. correct me if I am rwong

[abdisabelete]

I haven't words which I thanks by you!

[jorgealejandrosaavedragarc]

Bien, utiliza la inversa de la matriz de Leontief directamente, luego la adjunta traspuesta y el ya le cambio de signo, para luego multiplicar vector por vector y obtener la nueva respuesta de los nuevos X1, X2, X3.

[LucyMburu]

Your the best but kindly at finding the cofactor you have mislead most of us

[nanakwasiboadi]

Pls help me...
In the Leontief input-output model, how do I find the following:
1. impact multipliers
2. Intra and inter-sector effects

[shaifalirathore]

(d) part says that demand increases or decreases by (not to) therefore we should increase d1 by 40 i.e 400+40= 440

[luthfiasalma]

in number 3 where do you get 0.70 ; 0.45 ; 0.60?
hope you reply to my question
thank you

[millicentsarfo]

Please where did u get the 0.70 and 0.45 that's the number 3

[Septumsempra]

I'd really love to see this in R!

Great vids, keep up the good work

s/o from South Africa

[simbarashejimu]

Solve that's for meConsider a Leontief input-output model with no substitution. Assuming that the input matrix is given by .
Prove that this production plan is Marks]
Show that any production plan with is a profit maximizing at a unique vector of Marks]
Show that the prices obtained in (b) have the interpretation of the amounts of the primary factor directly or indirectly embodied in the production of one unit of the different Marks]

[nana_os]

Approach is perfect yet answers are full of mistakes. I would advise you dont compare your answers to his. The first co-factor was wrong and also when he was finding the inverse, instead of a determinant of 0.4773 he used 0.4733 which has make all his solutions wrong but one a correct method working with wrong figures

[jorgealejandrosaavedragarc]

Estoy analizando : Una alternativa de agregacion in input output analisis and national accounts ( 1967).

[greenhunter]

Pano nakuha Yung sa inverse na answer e.g. 1.2256 and so on. Dito ako nalilito....

Sana may make answer....